Transportation &
Logistics
Blockchain 101
Definitions, Applications, Use Cases
George Abernathy
Chief Revenue Officer, FreightWaves & BiTAFreightWaves is the number one media source on the freight markets. The publication nearly 700,000 page views per month, covering issues ranging from the freight markets, regulations, economics, and technology. Our readers also spend 2x the time on our compared to other industry news sites.
BiTA is the world’s largest blockchain standards organization with a specific focus on blockchain and technology applications in freight transportation. In less than six months, it is also the largest transportation organization (bigger than the ATA, TIA, and TCA combined).
Presenters
Lance Healy
Co-Founder and Chief Innovation Officer, Banyan Technology Inc.
Pioneered direct carrier connectivity through an e-commerce market place in 1999. Then developed live connectivity to over 1,400 LTL, Parcel, TL, and Brokers. Banyan also expanded in to local carriers adding over 1,000 additional local carriers in 2018.
Banyan supports connections for over 34,000 client locations, including 3 of the top 5 largest freight brokers in the country.
Presenters
BiTA Tier-1 Members
Block Chain
Basics
Rapid Industry GrowthIn 2017, consulting firm Deloitte said that 10% of global GDP would be built on top of blockchain applications by 2025 -- approximately $12 trillion dollars.
It’s estimated that Blockchain in Transportation is a $750 billion dollar opportunity in the U.S. alone.
Blockchain Market
Comparison
A decentralized and distributed digital ledger to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and the collusion of the network.
What is Blockchain
Blockchain is the “DNA of data”
• Very difficult to alter or fake• Lineage / History Tracking• New info (children) retain a link to history• Many copies make information resilient
to single cell failures or attacks• Built-in code executes instructions across
copies
What is Blockchain
For most transactions across industries, each participant currently records their own version of the truth.
With multiple records of the same information across systems, the data is vulnerable to error, fraud and inefficiencies. Frequently, businesses rely on intermediaries and internal processes to mitigate these risks.
With blockchain, transactions agreed by consensus are added to a block, a unique cryptographic code is calculated of the block, and that code is added to the following block creating a unique chain of blocks containing all the transactions.
Blockchain Market
Comparison
What’s going to
change?
Agreements Enforced by Strongest Tribe
Evolution of Contracts
Agreements Enforced by Institutions
Evolution of Contracts
Agreements Enforced by Smart Contracts
Evolution of Contracts
Computer code, attached to a blockchain transaction, which is executed under predetermined conditions.
Intended to facilitate, verify, or enforce the negotiation or performance of a contract.
Smart Contracts
Reality Check
The Good,
The Bad,
The Laggards
Opportunities
• Free up capital
• Lower transaction costs
• Speed up processes
• Provide security and trust
Challenges
• Scalability– Public blockchains are currently limited to 3-20 transactions per
second. Visa is capable of approx 56,000 tps.
• Data Privacy– By definition, all data is held by all participants, careful protocols
have to be agreed to encrypt commercially sensitive data in any ecosystem.
Challenges
• Collaboration– Many applications of blockchain require agreement of
protocols within industries.• Commercialization
– Blockchain applications code are generally open source and can be utilized anonymously, so IP is difficult to protect.
FUEL PAYMENTS AND
REPRICING WITHOUT
THE NEED FOR A
PROCESSOR
RECORDING RFPs
AND TRANSACTIONSImmutable record of agreed
economics
PAYMENT AND
SETTLEMENT SOLUTIONSQuicker, cheaper payments
INTERNET OF THINGSOdometer recordings, parts
warranties & vehicle servicing
EDI
COMMUNICATIONS
Use Cases
Uses Cases II
When does
Blockchain hit us?
Adoption and
Implementation Forecast
2018-2020 - Education, Case Studies, and Early Adoption● Industry-wide education on use cases outside of
crypto-currency● Develop industry-wide standards and apply to case
studies● Early adoption within innovative startups and pilot
programs at large corporations with extensive resources (ex: IBM, Daimler)
● Regulatory authorities develop auditing and compliance practices
Adoption and Implimentation
Forecast
2021-2025 - Growth● Early adopters and standards activity provide greater
clarity and minimize uncertainty, driving widespread adoption
2026 and beyond - Maturity● Blockchain is widely adopted and considered an
integral part of the supply chain ecosystem
Somebody’s not
going to like this.
Disruptive Impact
As blockchain digitizes, decentralizes, secures and incentivizes the validation of transactions, it will fundamentally change the industry.
● Eliminates need for intermediaries ● Expedites payments and settlements● Automates proof of delivery● Provides immutable record of agreed economics
Winners and Losers
End to End Implementation
Snapshot
Your turn for
Blockchain
Q & A